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Immigration bosses promised that scenes of chaos which have engulfed Heathrow and Gatwick airports would not be repeated when the Games happen - and are now re-hiring retired passport control officers to man checkpoints.

The Border Force will spend £2.5 million to bring back former members of staff, with some coming from as far afield as the United States. They will be paid travel expenses and given hotel accommodation on top of an allowance of up to £30 an hour.

However, they will not be deployed until July - leaving a continuing headache for managers who are under severe pressure to end the queues, which have been caused by a lack of staff at checkpoints.

They are now facing warnings from business groups that Britain’s international reputation faces damage and that investors may be put off by the prospect of waiting up to three hours to be allowed into the country.

Baroness Valentine, chief executive of the business organisation London First, said the border agency was failing and called for urgent action to avoid further damage to Britain’s reputation.

“The Border Force must up its game. It is failing in its task and failing the UK, and it’s simply not good enough,” she said.

“We cannot say we are open to business and then force visitors to queue for hours to get in.

“At a time when we need investment and cash spent in the UK, we can’t afford to deter businesses and tourists from coming here.”

At Terminal 5 yesterday a US businessman on his first visit to London described chaotic scenes at the arrivals hall.

"There are at least 1,000 people in this line for non-EU citizens. There are only eight border guards working here and at least 17 empty desks," said Andy Hardin, 46, from Alabama, who works in the aerospace industry.

"I've been in the line for nearly an hour an 45 minutes and I'm only three-quarters of the way through.

"It's going to be a nightmare in the Olympics. This is my first time to Heathrow, and to London - and it doesn't make me want to come back."

Trade unions claim the delays are due to a combination of staff cuts last year and the current policy of carrying out full passport checks on all passengers, which was introduced in the wake of last year’s border scandal.

But it will be the Olympics which put airports - especially Heathrow, in west London, under the greatest strain.

Heathrow’s operators have spent £20 million to cope with the surge in passenger numbers over the Games.

There will be more than 17,000 competitors and 500,000 spectators arriving from across the world, plus 20,000 journalists. The busiest travel dates are expected to be July 16 and August 13, the day after the closing ceremony.

Yesterday Brian Moore, the head of the UK Border Force, whose uniformed officers check passports, was sent on a tour of television studios in a bid to offer some reassurance.

“The vast majority of passengers pass through immigration control quickly,” he claimed.

“Overwhelmingly we are doing a good job on balancing getting people through whilst making sure the border remains secure.

“Queues are caused by a number of factors, including incorrect flight manifests or early or late planes which result in bunching.

“The important factor is to have staff that are flexibly deployed in the right numbers at the right times and this is what we always try to do.”

Damian Green, the immigration minister, will be questioned about the queues by the Commons’ all-party Home Affairs Select Committee on May 15.

Keith Vaz, the committee chairman, told BBC Radio 4’s Today programme: “There is a real problem and the problem has emerged over the last few months.

“I’m not saying we should abandon checks, but it’s a choice for the Government - you either look at the way you deal with people when they arrive at Heathrow or you recruit more staff.

“This is not just about the Olympics, this is about what happens before and after, it’s about Heathrow as a world-class airport and it’s about our reputation, and we need to make sure we get it sorted.”

One passenger caught in the Heathrow yesterday was Andrew Grill, the chief executive of a social networking company, who landed from a business trip to New York at 7.40am.

“There was already a queue at Terminal 3 of more than an hour. I’ve never witnessed such a long queue in the UK before,” said the 43 year-old from Kensington, west London.

As part of the Border Force plan to hire former workers, one couple who retired to North America last year are being flown back to Britain to take up their old jobs for the seven weeks of the Games.

The Border Force is also offering extra payments to staff who normally work in backroom jobs, such as processing asylum applications, if they volunteer to work on border control desks.

Volunteers from other parts of the civil service have also been offered the work.

Volunteers from other parts of the civil service, who agree to work on the border control during their annual leave, are believed to be earning between £450 and £1,200 on top of their normal salary, depending on their grade.

They will receive four days’ training in how to be an immigration officer and most will be based at London airports.

A Home Office source said: “During the Olympic period the agency is spending £2.5 million to provide something like 480 extra staff including a large number who are post-retirement.

“There will also be another 100 volunteers from elsewhere in the Home Office and from other government departments.

“A lot of the money will go on putting these volunteers up in hotels because they don’t live anywhere near the ports and airports they’ll be covering.”

A spokeswoman for Heathrow operator BAA said: “Immigration waiting times during peak periods at Heathrow recently have been unacceptable and we have called on the Home Office to address the problem as a matter of urgency.

“There isn’t a trade-off between strong border security and a good passenger experience – the Home Office should be delivering both.”